Sunday, July 1, 2012

13 months consequtive winning teach me what is works for me:
1. Focus on what is working, not on what you like. If you like day trading better but having better result on swing trade by all means trade the swing... Unless you are trading for fun not to make money.
2. Know what you are doing. Identify the trading result. Is it from mere luck or the methods you apply. I sometimes try my luck for few trades but definitely not my bread and butter trade. Usually those trades I took after secured gains on the month. Whatever the trade goes, I will still net profiting.
3. Explore more depth of your working method. There is no end of improvement. For example if your methods only working at volatile market, find ways how to avoid choppy market. There is no point you trade when the odds not in your favor.
4. Discipline and throw away the "gut feeling" when trading. Like I only buy when news are good and vice versa. Don't care of the rest. The results show themselves. Sometimes it's wrong but over the long term, it will prevail.
5. Automate the trade if you can. Human Brain is not always on top condition. But you don't want to miss opportunity when you are not fit. Robot is the answer for this. Using the robot will eliminate the need to discipline and reduced the brain work when trading. I find out my brain is working better when not trading.
6. Able to move on. If your method is not working, and improvement didn't help, move on to new method. I have seen lot of traders stick to the useless method all the time and refused to admit it. It is human nature, but trading is not the area of human nature. In facts, it opposed all the common behaviour of most humans.
In the end trading is just tools to reach your better goals. Use the money from trading to reach another dream. Don't trade for the sakes of trade itself. The only reason I love to trade to make money because it is the easiest thing to gain big money legally. If there is easier way to make bigger money than trading I will gladly move on to it.